www.esource.com

The State of Residential Demand Response

Director of Customer Solutions, E Source

E Source Forum 2014 September 29–October 2, 2014

Rachel Reiss Buckley

www.esource.com || © 2014 E Source 2

July 17, 2013: Jersey Shore

www.esource.com || © 2014 E Source 3

The Culprit

www.esource.com || © 2014 E Source 4

Now They’re Interested

Residential DLC Participation Rates (2011)

www.esource.com || © 2014 E Source 6

Residential DR Market Disruptions

New program models

Energy savings too

Customer engagement

www.esource.com || © 2014 E Source 7

Thermostats Are a Driving Force of Residential DR Change

1st generation 2nd generation 3rd generation

www.esource.com || © 2014 E Source 8

Smart Thermostats Are Mainstream

http://www.youtube.com/watch?v=DqB3X3jkNPk

www.esource.com || © 2014 E Source 9

Smart Thermostat Program Models 2014

BYOT

Bonus incentives

Free thermostat

www.esource.com || © 2014 E Source 10

Residential DR Program Models 2014

Utility intervention for DR

Customer choice

Behavioral demand response Free thermostat/

direct install

Free thermostat from retail electric provider

Bring your own thermostat

Dynamic pricing program

www.esource.com || © 2014 E Source 11

Self-Install

www.esource.com || © 2014 E Source 12

Underlying Factors Driving Customer Engagement

Customer engagement

Device choice

Self-install Non-

automated response

Remote interface

www.esource.com || © 2014 E Source 13

Remote Interface Usage

8 logins per user per week

88% of participants accessed their

thermostat remotely

53% of respondents changed the setpoint a

few times per week

www.esource.com || © 2014 E Source 14

Many Uses for the Remote Interface

www.esource.com || © 2014 E Source 15

The Biggest Hurdle

Evidence of energy savings

www.esource.com || © 2014 E Source 16

Energy and Demand Savings (Reported)

www.esource.com || © 2014 E Source 17

A Note About the Numbers

Know the story behind the numbers, ask questions: Does the data in the report match what’s in the

press release? What evaluation standards and confidence levels

are they required to use? What’s the sample size? Are they reporting HVAC energy savings or whole-

house energy savings? How was the trial set up?

www.esource.com || © 2014 E Source 18

Utility Technology provider

Evaluator Impacts

Sample study notes Link to study

Pacific Gas and Electric Co.a

Opower/ Honeywell

Nexant No significant savings at 95% confidence level

95% confidence level; randomized control trial, results net Home Energy Report impact

Findings from the Opower/Honeywell Smart Thermostat Field Assessment

NV Energy EcoFactor ADM 11% average summer HVAC savings; 6.4% winter gas savings

Low variability in p-test, difference-in-differences methodology

2013 M&V Demand Response Program (PDF)

National Grida Ecobee Cadmus 16% cooling-season energy use; 10% heating-season gas use

90% confidence level-gas, none indicated- electric; small sample size, pre-/post- analysis

Wi-Fi Programmable Controllable Thermostat Pilot Program Evaluation (PDF)

Energy Savings Studies (Third Party)

Note: a. pilot program. © E Source

www.esource.com || © 2014 E Source 19

What’s Next?

Savings data: Normalize? Ignore? Wait

for more? Partner with the

innovators

Leverage dynamic pricing with behavioral

DR and/or enabling technologies

More customer choice and more customer

engagement

Residential demand response

www.esource.com || © 2014 E Source 20

We’re Getting There … Slowly

www.esource.com || © 2014 E Source 21

Resources Smart Thermostats Rising: Current Technologies and Trends, E Source,

TAS-F-12 (2014) Smart Thermostat Pilots and Programs, E Source, EDRP-RB-52 (2014) What resources are available to help utilities justify natural gas savings

from smart thermostats and explain to regulators why the new smart thermostats differ from their old programmable predecessors?, E Source, IV-Tech-Answer-50 (2014)

Smart Thermostat Math: How to Read the Numbers, E Source blog post (2014)

Smart Thermostat Programs: Cutting Energy Use and Demand, E Source, TAS-RB-87 (2014)

How do utilities report the energy-efficiency savings associated with smart thermostat installation as a component of their DSM programs?, E Source, IV-DSM-AskES-114 (2014)

What energy-efficiency savings are utilities claiming from the use of smart thermostats?, E Source, IV-Tech-Answer-1 (2014)

www.esource.com || © 2014 E Source 22

Rachel Reiss Buckley Director, Customer Solutions, E Source 303-345-9104 rachel_buckley@esource.com

For More Information

Have a question? Ask our experts: www.esource.com/question